6 Develop a global partnership for development

Where we are

2012 Update

This last Millennium Development Goal was born out of the recognition that for countries like Belize to achieve the rest of the Goals, an international environment which is conducive to their attainment must be sought and sustained.

Some challenges being faced in Belize include:

a) While the primary balance of payments was above 2 percent of GDP over the past five years and the overall deficit was below 2 percent of GDP during the last four years, Belize continues to face challenges in fiscal consolidation. As a consequence, there are obstacles in reducing the debt-to-GDP ratio. Moreover, there are challenges in preserving investors’ confidence and FDI inflows. Finally, Belize is still far from setting up core rules of transparent, accountable, inclusive and responsive governance that can generate local consensus and international support.

b) Belize is making slow progress in relation to Trade Policy and Development Progress. The challenge is to further develop a legal framework that will allow greater integration with the international trade and financial system.

c) Strong and deliberate advocacy is required to enable policy makers, technocrats and the private sector to leverage foreign trade as the tool to advance development goals. Lack of capacity within the Directorate General continues to hinder success in this area.

Successes

The benefit of new technologies, especially information and communication, has become more widespread in Belize. The use of cellular phones has rapidly increased from 6.7 persons per 100 in 2000 to 53.2 per 100 in 2008. Also, the number of internet subscribers has increased from 6 per 100 in 2000 to 11.3 per 100 in 2008.

The gross international reserves increased from US$115 million in 2000 (the equivalent of 0.2 months of imports) to US$218 million in 2010 (the equivalent of 3.2 months of imports).

Implementation of the Aid for Trade Strategy, launched in January 2011. One of its milestones is the leverage of the market access opportunities created by the CARIFORUM|EU Economic Partnership Agreement (EPA) and the CARICOM Single Market and Economy (CSME). This will increase exports by building productive capacity and modernising trade policy and regulations.

Belize has leveraged relationships with Central American SICA partners. The Partial Scope Agreement (PSA) with Guatemala was ratified in 2010 and has increased by 100 percent exports which are currently at more than US$16 million. Belize is negotiating a partial scope agreement with Mexico. This will be followed by negotiations with El Salvador and Honduras.

Priorities

The following priorities are now very high on the political agenda: 1) supporting and promoting sustained growth to facilitate both poverty reduction and development, 2) enhancing Belize’s role within the international community, 3) improving public financial management, 4) facilitating structural transformation, including the modernization of Belize´s regulatory and legal institutions, 5) improving Belize’s credit rating, and 6) promoting agreements and opportunities enhancing global trade. The pursuit of the above priorities will allow greater integration with Caribbean economies and gains from international trade and the financial system.